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Old Economic Thinking Is The Problem, BIS Warns
Submitted by PerryMehrling via PerryMehrling.com,
The 85th Annual Report of the BIS is not perhaps the obvious first choice for beach-reading on a holiday weekend, but having read through its 119 pages, the core message reminds me of nothing so much as the most memorable line of the 40-year-old summer blockbuster “Jaws”: “You’re going to need a bigger boat.”
Notwithstanding everything that has been done since the Great Financial Crisis, it is not at all safe to go back in the water. Indeed danger of financial fragility is greater now than a year ago.
The danger this time comes, interestingly, not so much from the banks as from the policymakers, who persist in using empirically discredited pre-crisis thinking as a guide to macroeconomic policy. The problem, in a nutshell, is that “a monetary policy focused on managing near-term inflation and output may do so at the cost of higher fluctuations in credit and asset prices than in the past.” (p. 75)
In the modern financially globalized economy, the connection of monetary policy to domestic inflation and output is much attenuated, while the connection to asset prices is much increased. Monetary authorities who are focused on stabilizing quarterly aggregate demand can and do easily miss the effect of their actions on building up financial imbalances in the longer run, especially so when those imbalances are building up outside their own national borders.
In this respect, the biggest danger comes from the largest policy actors, the Fed and the ECB, since the “dollar zone” accounts for nearly 60% of world GDP, and the “euro zone” much of the rest (p. 87). The major central banks are keeping domestic interest rates low in an effort to stimulate domestic output in the short run, but the consequence is to blow asset bubbles in the world as a whole. The problem is “excess financial elasticity” and the current major source of the problem is policy.
Why are they doing it? The problem, suggests the Report, is with the faulty ideas on which policy makers are depending (p. 13):
“If one strips the prevailing analytical view of all its nuances and focuses on how it is shaping the policy debate, its basic logic is simple. There is an excess or shortfall of final demand for domestic production (an “output gap”) that determines domestic inflation, not least by underpinning inflation expectations. Aggregate demand policies are then used to eliminate that gap and so achieve full employment and stable inflation; fiscal policy affects spending directly, and monetary policy indirectly, through real (inflation-adjusted) interest rates. The exchange rate, if allowed to float, permits the authorities to set monetary policy freely in line with domestic needs and will, over time, also balance the current account. If each country adjusts its monetary and fiscal levers so as to close the output gap period by period, everything will be fine, domestically and globally.”
Thus the boats we are using to combat the shark of financial fragility are the macroeconomic policies (and especially the monetary policies) of individual countries, each looking for what seems best for their own domestic economy. The problem is spillover to the rest of the world, and from there spillback to the source. The main problem is not current account imbalances, but rather growing international financial imbalances, to which standard economic models are blind. “Another year of exceptionally expansionary monetary policy raises the question of whether existing policy frameworks are fit for their intended purpose” (p. 64).
And that’s where the bigger boat comes in. We live in a global economy, and the central problem we face is global liquidity. In times of crisis, central banks have proven their ability to cooperate for the good of all. But what we need is more than that. What we need is cooperation for crisis prevention. Faulty ideas are part of the problem, and faulty mandates are the other part.
“Two factors have severely hindered monetary policy cooperation outside crises. The first has to do with diagnosis and hence the perceived need to act. As explained above, the prevailing view is that flexible exchange rates, combined with inflation-focused domestic regimes, can foster the right global outcomes. As a result, discussions on how to promote global coordination have centred on how to deal with current account imbalances, which are less amenable to monetary policy measures. Indeed, the terms “imbalance” and “current account imbalance” have been treated as synonymous. The second factor has to do with mandates and hence the incentive to act. National mandates raise the bar: actions must clearly be seen to promote the interests of one’s own country. In other words, there is no perceived need and no incentive.”
Don’t say we didn’t warn you!
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kill all the old economic people......
Central planning is the problem. Let the People decide what interest rate should be, not some shithead academic.
let the people decide what they want ot use for money. Legal tender laws are also at the core of the problems. But central bankers like the fuckers at the BIS are not about to relinquish their ability to force people, at gunpoint, to use only units of currency that they can conjure out of thin air in unlimited amounts
You mean Keyensians were wrong. Krugman would rather cut off his penis than admit that
The problem is a global debt bubble has been blown to the extent that we now have total global debt outstanding of more than $220 trillion.
This represents about $120 trillion of excess debt that was created as a consequence of the BIS coordinated rigging of the gold and interest rate market.
This BIS article is complete horse pucky.
We need to get rid of debt-based fiat money and central planning.
Krugman would rather cut off his penis
If he had one. I bet he is smooth in the front, like a Ken Doll.
In 1945 was started the greatest credit expansion experiment in the history of civilisation. That experiment is now coming to an end.
This has US Federal Reserve written all over it. The Fed wants a flexible policy based upon global conditions (BIS Cartel) and not tied to current internal job/inflation mandates of US only. Another sign the US citizens are becoming irrelavant and disconnected.
BTW:
Now we know why the EURO was created, control (vs numerous currencies). "...the biggest danger comes from the largest policy actors, the Fed and the ECB, since the “dollar zone” accounts for nearly 60% of world GDP, and the “euro zone” much of the rest (p. 87)." These are some smart people we are dealing with and know how to protect their interest?
Krugman DID cut off his penis...and still didn't admit it.
What poppy cock.
Its not economic shamanism which is the problem. Its the mindset of arrogant hegemony that fixes the fate of empires.
The BIS is just a pigeonhole of those who served the kings.
"Thoughts on thoughts."
Do the come any other way?
The best advantage an "economy" has is that it is in fact working.
That's the most important point.
Second near as I can tell in "confidence" that this will still be the case.
SPECIFICALLY: "he Arab Oil Embargo."
Did it create gas lines everywhere? Yes.
Did it "destroy the economy"?
BWHAHAHAHAHAHAHA.
The exact opposite happened!
So this go around we have a "prices are too low for the economy to succeed" thesis.
That sounds even more ridiculous...
National central banks will be thrown under the bus and blamed for the crash, while institutions like the BIS will say "I told you so" and look like the good guy.
The BIS will join with the Mises/Gold standard/Russia/China power axis to create the new system, which will make the gold crowd think they won. A new "gold backed currency" will be announced by China/Russia and we will be told it's backed by X amount of gold.
Of course, nobody will be able to verify that, they'll have an agency do it. This is why RT often invites on Mises/gold standard people like Ron Paul and Peter Schiff and others. They're the "controlled opposition." Or did you think they get invited to CNBC regularly because the MSM truly wants to be discredited?
So, it will look like a victory but it will merely be a sham as usual.
wow, poppy cock. how charming.
My god the lies never end. lol. They give people the theories to then later claim they need to be revised. Utterly absurd. They lie and they create lies so nobody knows what is happening and so most people just throw up their hands and give up. It isn't complicated, it is calculated. It is called non-linear disinformation. http://www.thetruthaboutthelaw.com/non-linear-disinformation-makes-it-im...
I am not sure linear disinformation is even possible. Both truths and lies are functions of multiple outputs / branches. Truths compound more truths and lies compound more lies. To linearly influence the outcome of a nonlinear growth function requires serialization, which I am not sure has any significant probability of being acheived (though it is certainly possible).
"It isn't complicated, it is calculated"
Yes, it is by design.
BIS is the head of the hydra.
As usual, your link provides good background to an article like this. People should read it.
But these "faulty ideas and faulty mandates" are actually a perfect fit for their intended policy purpose: to transfer vast wealth from a lot of people to a few people.
We should hope that this policy succeeds, because if it doesn't, the Plan B to accomplish the same thing, historically, has been war.
The. "Default of Peurto Rico" is definitely a wealth transfer!
We're skipping down the road to the Emerald City and don't you dare say anything different.....
"The problem, in a nutshell, is that “a monetary policy focused on managing near-term inflation and output may do so at the cost of higher fluctuations in credit and asset prices than in the past.”
Gee, now you would not be talking about Sweden, Norway, NZ, Australia, Canada, Korea etc.... there, would you ......
"Notwithstanding everything that has been done since the Great Financial Crisis, it is not at all safe to go back in the water."
Nothing has really been done since the Great Financial Crisis began, other than smoke and mirrors. That would be why it is not safe to go back in the water.
Sounds to me like the BIS is now spewing BS to cover its ASS. It was your politicians and your central bankers at fault they cried. No need to hang us. We will rescue you, trust us!
This just following the revelation that the IMF knew all along that their Greece policy was faulty?
The rats are fleeing the sinking ship. Which rat is next?
The BIS IS the PROBLEM, who owns the BIS ? They are the problem.
This item makes a good analysis of the current dilemma in national monetary policy: the persistence of one-nation thinking in a globalized economy. Extending this analysis into a forecast of events that can be expected in the short and intermediate future, one can see that the expansion of the US (and European) monetary base at very low interest rates has incentivized borrowers worldwide to undertake dollar-based borrowing. If an attempt is made to taper off such monetary expansion, it can be expected that dollar-based borrowers the world over will default due to the combined effect of interest rate increases and dollar strengthening in the currency market. This will further provoke resentments of the Greek variety and demands to de-dollarize the world economy. The latter will, in turn, raise the level of hostility evident against the US, and this will promote the further expansion of pentagon extravagance. The Fed has truly put itself into a trap. It will not be able to raise interest rates back to what used to be called "normal" levels. But maybe this will not be the worst of all outcomes. A permanent lowering of "normal" interest rate levels may well incentivise needed innovation and infrastructure maintenance, as well as disincentivise the mere seeking of exaggerated rents on the part of asset holders.
There is no "one nation thinking" in our current system - the BIS (and the financiers who manage it) runs practically everything. The Fed and ECB are just branches of the system and do nothing without the say so of the BIS and the internationalists at the top of the pyramid. The problem is globlism, not "one nation thinking". The banksters want us to presume that sovereignty is the ultimate problem when it is actually THE BANKERS who are the ultimate problem.
"... it is actually THE BANKERS who are the ultimate problem," BECAUSE they represent the best organized criminals, which are reflections of the deeper problems, that civilization is necessarily controlled by applications of the principles and methods of organized crime. Warfare was organized crime on larger and larger scales. That selected for the development of the surviving War Kings, making the powers of sovereign states, to which, in turn, there continued to be applications of the methods of organized crime through the political processes, so that the international bankers developed as the best organized gangs of criminals, so that they could control the powers of so-called sovereign states, such that governments ENFORCED FRAUDS, by privately controlled banks. Thus, THE BANKERS became the Fraud Kings, while the BIS is the King of Kings of Frauds.
The ultimate problems are the death control systems, which have developed to become most successful when done through the maximum possible deceits. That enabled the best organized gangs of criminals to construct the social pyramid systems, which gradually became more sophisticated ... More primitive systems of backing up lies with violence became more complicated systems of backing up legalized lies with legalized violence. The entire established monetary/taxation systems are due to privately controlled banks being able to create the public "money" supply out of nothing as debts, which frauds are enforced by governments. However, there are no genuine resolutions to those real problems which would not necessarily continue to express the ways that money is measurement backed by murder, because the debt controls always depend upon the death controls.
The degree to which there can be central planning, by relatively small groups that control the issuance of the public "money" supplies, are reflections of the facts regarding how the best organized crimes are able to operate. THE BANKERS control the public "money" supply, in ways whereby the vast majority of people no longer have any effective control, nor input into the monetary systems' features, like interest rates, because of the degree to which almost all of the successful politicians have become THE BANKERS' puppets, due to the roles of the funding of politics, having created vicious spirals through political power, into the monetary system, and back around again, over and over ... while, at the same time, most of the people were reduced to being the masses of muppets, who were tricked and fooled into voting for THE BANKERS' political puppets.
Therefore, any "solutions" to the problems caused by central banks engaged in central planning, all track back to ultimate problems which are inherent in the nature of life, and which are necessarily resolved by the death control systems. THE BANKERS are providing an expedient set of solutions to those chronic political problems, through the operation of the social pyramid systems, that they have made and maintained for thousands of years ... with the last few centuries more and more being dominated by the international bankers being able to capture control over the public "money" supply, which legalized counterfeiting became frauds that governments enforced, within which overall context, the BIS developed to become the King of Kings of Frauds.
However, there are no genuine solutions to those problems which do not track back to their SOURCE, which was the de facto death control systems, which developed to be done through the maximum deceits, upon which basis were constructed the debt control systems based on the maximum frauds. By and large, most articles and comments on Zero Hedge tend to deliberately ignore the degree to which political economy is inside of human ecology, and therefore, money is measurement backed by murder, since the debt controls are backed by the death controls, the same as all private property is based upon backing up claims with coercions.
Moreover, in general, the currently established human systems are politically impossible to reconcile with their actual integrations into the surrounding environmental ecologies, because of the degree to which the only connections between human laws and natural laws are the abilities to back up lies with violence. Hence, we have fundamentally fraudulent financial accounting systems, wherein "money" is made out of nothing as debts, and can disappear back to nothing when those debts disappear, in ways which, at first glance, blatantly violate the basic laws of nature, and therefore, can not be reconciled with the energy systems found through industrial and natural ecology, BUT, which actually still are consistent with general energy systems, but only as based on ENFORCEMENT OF FRAUDS. Since the established human systems make it politically impossible to admit that we have fundamentally fraudulent financial accounting systems, it is NOT POSSIBLE for human systems to be reconciled with industrial and natural systems. Since we operate our actual human ecology through murder systems based on the maximum possible deceits, that backing up monetary systems based on the maximum possible frauds, it is politically impossible for those human systems to be rationally integrated as human ecologies, in the context of their overall environment.
There are common trends to blame THE BANKERS, which is surely correct regarding the existing social pyramid systems. However, those who blame THE BANKERS tend to never do any deeper analysis, and therefore, tend to never provide any proposals regarding how to operate the human murder systems better, which is what it would actually take to actually operate the human money systems better. In that context, I point out that what actually exists now are globalized electronic monkey money frauds, backed by the threat of force from apes with atomic bombs. The old systems of slavery backed by swords and spears, which developed to become paper frauds, backed by gunpowder force, have been superseded by many orders of magnitude by the development of electronics and atomic energy, etc. ...
Of course, in that context, "Old Economic Thinking Is The Problem!" H owever, it is politically impossible for the BIS to go through enough radical paradigm shifts in the ways that it perceives economics to be able to situate that as a subset of militarism, and thereby, be able to comprehend that the real role of the BIS is to be the King of Kings of Fraud, that supervises the uses of the political powers of sovereign states, which were originally made and maintained by the War Kings, because the ultimate problems are the death control systems, which are compounded by the history of warfare selecting for those to become most socially successful when done through the maximum possible deceits and treacherous, which, in turn, enabled the political economy to be built on that foundation, as systems which were most financially successful when done through enforcements of the maximum possible frauds.
I REPEAT: The ultimate problems are the death control systems, while the de facto solutions to those problems have been as deceitful as possible. Therefore, ultimate solutions must be better death control systems. That is made especially imperative due to the development of weapons of mass destruction becoming trillions of times more powerful, while electronic communications (enabling electronic frauds) have also become trillions of times more capable, than ever before in human history. THE ONLY THINGS THAT HAS CHANGED HAVE BEEN DUE TO PROGRESS IN PHYSICAL SCIENCE. However, so far, that has only been applied through the intense paradoxes present in political science to become better at backing up lies with violence, i.e., to become globalized electronic frauds, backed by atomic bombs. However, in the mainstream news worlds, the vast majority of people have been reduced to incompetent political idiots, or Zombie Sheeple, due to the ways that they have almost totally lost control over the public "money" supply. The effectively privatized public "money" supply becoming THE BANKERS' FRAUDS, ENFORCED BY GOVERNMENTS has resulted in the vast majority of people being fleeced to exhaustion, while they are being set up to be slaughtered, while that vast majority of the people do not understand that, because they have been conditioned to not want to understand that.
In some of the alternative news worlds, like on Zero Hedge, there are relatively large numbers of people who superficially understand that: "The banksters want us to presume that sovereignty is the ultimate problem when it is actually THE BANKERS who are the ultimate problem." However, that continues to usually still be a relatively superficial view, since both sovereignty, and the effective control over the uses of those sovereign powers by THE BANKERS, both trace back to the applications of the principles and methods of organized crime, which, in turn, trace back to the death controls being operated through the maximum deceits, enabling the debt controls to be operated through the maximum frauds. It is way too typical on Zero Hedge to have superficial analysis be followed by superficial "solutions." While that those may well be way better than to be found in the more mainstream news world views, the bogus "solutions" recommended on Zero Hedge tend to be combinations of various versions of "KILL THE BANKERS" along with reliance on the transcendental poetry of magical words and phrases, such as "free markets." Those kinds of bogus "solutions" tend to NOT develop better understanding of the death control systems, and how intensely paradoxical those have become!
As one of the best of the Web sites in the alternative news worlds, Zero Hedge may serve as an illustration of the degree to which there is now almost nothing but a core of organized crime, surrounded by layers of controlled opposition groups. In that context, it is extremely ironic understatement to read an article that reviews the BIS, as the King of Kings of Fraud, calling for new economic theories. Hah! Of course, that is superficially correct. However, what actually is needed are series of intellectual scientific revolutions that would reconcile physical science with political science, through both being radically transformed by the other, in ways which recognize how both were already significantly influenced by each other in intensely paradoxical ways.
Warfare was the oldest and best developed form of social science and social engineering. Militarism, as the ideology of the murder systems, is the self-justifying supreme ideology. There were good reasons for how and why that happened, namely that natural selection pressures selected for human artificial selection systems which would operate the necessary death controls, in ways that followed the paths of least action, or least resistance, which in human terms meant the paths of least morality, whereby the actual death controls were most socially successful by becoming the most deceitful and treacherous, within which systems developed the kind of political economy which can be supervised by the BIS, as the King of Kings of Fraud.
However, following through a deeper analysis of that kind then leads towards proposing more realistic solutions, which require better social science and social engineering, that could achieve better death control systems. Such systems are NOT going to be based upon "KILLING THE BANKSTERS," nor are such systems going to be possibly based on the various false fundamental dichotomies and impossible ideals, which are presented as the transcendental poetry about "free markets," which do not deal with the ways that those "free markets" are going to address the death control issues, or address the default to the "free market in murder," which was the de facto history of warfare, which morphed to become the currently entrenched political economy, as dominated by puppet governments enforcing privately controlled banks' frauds.
Of course, the bogus "solutions" promoted by the BIS are merely more gobbledygook jargon, that deliberately ignores the most important issues, which are that civilization is controlled by the methods of organized crime, and the historical results of how the actual murder systems were developed to impose the existing death controls, which, in turn, were the basis of the existing debt controls inside of the existing monetary systems. The ability to engage in any central planning by central banks is due to the history of organized crime, with warfare and domination of the political processes being the most important aspects of the expression of that organized crime.
The actually EXISTING situation is runaway debt slavery, generating numbers which have become debt insanities, which are going to provoke death insanities. The only genuinely better resolutions of those problems require deeper analysis of how and why civilization necessarily operates according to the principles and methods of organized crime, because the death controls are necessarily central to all other controls, including, of course, the central planning done by central banks. At the present time, all of the national central banks are the National Kings of Fraud, which are being supervised by various international organizations, in particular, the BIS as the King of Kings of Fraud.
Somewhat covertly, through its obtuse language, the BIS is promoting more globalization, towards some more powerful globally sovereign power, which would become more integrated globalized enforcement of frauds, whereby a sort of global sovereign power would enforce the frauds done by globalized private banks, along with the globalized corporations that have grown up around those banks controlling the public "money" supply. That agenda is supposed to carry through the consolidation of the established systems of enforced frauds, whereby globalized electronic frauds, backed by the threat of atomic bombs, is supposed to become stabilized!
Meanwhile, I have always been in favour of global government, and continue to be. However, in my view such a global government cannot be built on continuing to be able to enforce frauds, in ways whereby the vast majority of people must not understand that, and must not consciously participate in those systems. Rather, since enforcing frauds never stops those frauds from still being false, the established systems have actually become forms of runaway criminal insanities, that are psychotically out of touch with the relatively objective facts regarding their real environment, since everything done through the central planning by central banks is based upon that "money" being measurement backed by murder, in ways which are as deliberately denied and ignored as humanly possible.
The great challenge for the human species is whether or not we could survive the progress made in physical science, that has enabled the development of globalized electronic frauds, backed by atomic bombs. At the present time, the most probable answers appear to certainly be "NO!" With respect to that question, my proposals may be described as the Fringe Cubed position, while most of the Zero Hedge context is still on the relative fringe of the mainstream, while some of the comments are fringe cubed positions. The mainstream is based on taking for granted the currently established combined money/murder systems, based upon governments enforcing the frauds by privately controlled banks. The first fringe around that are those who recognize that those are the real facts regarding the central banks' central planning. The second fringe around that are those who propose bogus "solutions" which continue to be too linear. (As Skateboarder described as being problematic, in a reply above.) The third fringe returns to the SOURCE, which is the history of the death control systems, in order to propose realistic solutions based upon that.
I would like to imagine that human beings could achieve some more enlightened world government, that would be able to operate better death control systems. I do not believe that THE BANKERS' systems of covertly controlling everyone else through the methods of organized crime, enabling them to control governments to enforce frauds by privately controlled banks, has any longer term future that would be survivable for a technological civilization, since if such a technological civilization survives, then we are probably headed towards developing technologies which would become quadrillions of times more powerful, rather than merely trillions of times, as those are now. Indeed, during the life time of those alive today, the exponential growth of science and technology has enabled human beings to very rapidly become millions, then billions, then trillions of times more able to engage in global communications, as well as to threaten global destruction.
Furthermore, IF civilization was able to survive its contradictions, from a purely technological point of view, we could be headed towards that becoming quadrillions in the foreseeable future. HOWEVER, at the present time, our fundamentally fraudulent financial accounting systems are driving civilization towards manifesting worse and worse criminal insanities, headed towards psychotic breakdowns, due to the excessive successfulness of organized lies operating robberies, such as how the BIS is able to supervise globalized systems based on ENFORCING FRAUDS, which continue to get bigger and BIGGER, while their inherent contradictions that those frauds never stop being false also get bigger and BIGGER.
There is no doubt that, at the present time, "BIS and the internationalists at the top of the pyramid." However, they do that in ways which are driving apparently irreconcilable social polarization, and even worse, perhaps irreparable, destruction of the natural world, because they operate through social pyramid systems based upon integrated systems of legalized lies, backed by legalized violence, which make it politically impossible to face the facts regarding the real consequences of those enforced frauds controlling civilization through those fundamentally fraudulent financial accounting systems. Metaphorically speaking, I believe that we need to change the ways that we perceive the social pyramid systems, to see that those are actually social toroidal vortices.
The international banksters have an agenda to create a consolidated globalized government, that will continue to enforce their frauds, in a globalized social pyramid system, based on being able to continue to back up lies with violence. Although I am in favour of global governments, I regard the international banksters' agenda as having become runaway criminal insanities, headed towards psychotic breakdowns, due to the inherent contradictions that enforcing frauds never stops those frauds from still being false. Furthermore, such a form of global government requires that the vast majority of people continue to act like incompetent political idiots, and that all other nations surrender their sovereign powers to be controlled by THE BANKERS. However, understanding those levels of those problems does NOT stop there still being imperatives that there must be some human death control systems. Instead, deeper analysis of the established systems of enforced frauds only returns us to their SOURCE, which is that there are human murder systems. It is because measurement exists and murder exists, that money exists. The deeper issues, therefore, are that AFTER the development of globalized electronic frauds, backed by the threat of force of atomic bombs, how can the combined money/murder systems adapt to those technologies becoming trillions of times more capable and powerful than ever before in human history?
At the present, it continues to be that the most probable answer to that question is that the human species is going to commit collective suicide, due to continuing to attempt to enforce runaway electronic frauds, with threats of the use of atomic bombs, and other weapons of mass destruction. The established social pyramid systems are not able to change their perceptions of themselves to perceive those as social toroidal vortices, because they can not perceive themselves as general energy systems. The established systems supervised by the BIS cannot change their
The BIS is proposing increased globalization of their systems of enforcing frauds, which will actually drive the central planning done by central banks to become even more psychotically out of touch with the resulting runaway social polarization and destruction of the natural world. However, so far, the vast majority of people do not understand that, because they have been conditioned to not want to understand that by their public schools and mass media, while the few who do understand that tend to still do so only superficially, and therefore, promote superficial "solutions" that do not address the issues regarding how to operate the human murder systems after the development of weapons of mass destruction.
The BIS supervises social systems which are MADNESS: MAD Money As Debt, backed by MAD Mutual Assured Destruction. The BIS recommends that the solutions to the problems caused by fundamentally fraudulent financial accounting systems are more consolidated and globalized integration of those systems based upon being able to continue to enforce frauds. However, in my view, the only way that a technologically based civilization is going to be able to survive is by its philosophy of science going through series of intellectual scientific revolutions, to radically change the paradigms through which it perceives its political problems. However, those kinds of paradigm shifts do not change the problems, but only the ways that we perceive those problems. The problems will continue to be that, as long as any human life exists, then human death control systems must exist. Therefore, the deeper issues are that, after there develop globalized electronic frauds, backed by atomic bombs, could we transform our political science enough to survive having developed those technologies?
I WISH that I could believe that there was some possible way in which to answer "Yes." However, at the present time, more radical truths are not advancing, but rather, mostly still forced to retreat. All in all, there is no doubt that runningman18 was correct in the reply posted above. However, so far, I see nothing in a comment like that which could enable us to sufficiently transform the ways that we perceive the existing social pyramid systems to change towards perceiving those as social toroidal vortices.
Need to chime in,
When the DJIA was at 10K. People sold, never got back in. Now look what happened, DJIA up 7-8 K.
Maybe it's time to sell your original investment and play with the house's money. Not investing leads to two things.
1: Miss the rally, go into cash or PM's lose money.
2. Stay in cash and PM's and wait.
Don't know about you but I missed out on a hell of a rally. My PM miners are down 50%. Gold and Silver Eagles are down just not as much.
The danger this time comes, interestingly, not so much from the banks as from the policymakers, who persist in using empirically discredited pre-crisis thinking as a guide to macroeconomic policy.
As if these were two different entities. Amazing!!!
The Bank of England was a mistake.
William & Mary should have been assassinated.
And all the Jesuits impaled.
Aggregate demand policies are then used to eliminate that gap and so achieve full employment and stable inflation; fiscal policy affects spending directly, and monetary policy indirectly, through real (inflation-adjusted) interest rates."
Another exercise in trying to solve the thus-far-applied "solution", instead of tackling the real problem: decades-long outsourcing of whole western middle class economies.
Why does consumer demand remain weak to stagnant?
The middle classes are broke, and still heavily leveraged from the failed stimulus policies still being applied. Without good, growing incomes from good jobs, they remain severely impaired.
This, of course, continues to spin off GDP difficulties in other parts of the world, like China, which depended upon continued western consumer spending to support their growth and rapidly-expanding manufacturing capability. Since we're broke, they're broke too.
Like us, they foolishly engaged in stimulating domestic growth with easy monetary policy, and government loans and programs to keep their enormous workforce doing something. Now, they're choking on their own debt, while the central problem in the western markets continues to be side stepped or ignored altogether.
Will we return those lost jobs here to restore ourselves?
No. It wouldn't work even if we could. You're never going to regain domestic income on jobs clearly able to be done for less abroad; that genie won't go back into the bottle.
So, what then, is the solution?
The solution is as complex as the problem; both are multidimensional. An awful lot of harm has been done to western middle class economies, about which a great deal will have to be done. Many new and innovative components will have to be created, and much hard work and time will be needed. There will be many failures too; just getting the cretins who caused much of this mess harnessed under new scrutiny will itself require a steadfast, monumental effort...absolutely critical, though it is.
Still, there are some basic ways to start.
The solution will involve a crash to break things down into smaller, more manageable pieces. We can't fix this mess all at once. A lot is going to have to be reworked. For one thing, western corporations need to be facing very severe consequences for what they've done in the form of new tax, tariff, and immigrant labor policies. To stop the outflow of even new, skilled jobs as they are created, the costs of continued outsourcing so needs to be made prohibitively expensive. The solution starts with a tourniquet to stop the bleeding...
Second, government and monetary policies encouraging anything other than R&D investments (with ACTUAL R&D leading somewhere, like new, good-paying jobs for Americans)--here--must end. Enough with the racket. Corporate America and Wall Street have EARNED back draconian re-regulation...in spades. It's high time they faced it. It's long past time to bring back big limits, and new accountability. It's also time to start actually prosecuting many of these so-called "investors" and "business people ". The country can't withstand much more of the deleterious effects of the financial engineering schemes they hatch.
It would be better for economic growth domestically if government "stimulated" consumers with direct cash payments to spend, instead of driving bubbled up assets that trickle down to no one. If ALL Americans are backing the risks, THEY should also participate in the benefits.
Again, enough with juicing the rackets; it's NOT working.
m
It would be better for economic growth domestically if government "stimulated" consumers with direct cash payments to spend, instead of driving bubbled up assets that trickle down to no one.
Consumers are traders. They are free to make trading promises and get them certified any time they want. With a properly managed Medium of Exchange (MOE), reliable traders enjoy zero INTEREST load in this process. Unreliable traders (traders who DEFAULT) incur heavy INTEREST load making their trades unworkable.
When you lock up a marketplace by distorting this very natural and logical process, you don't fix it by having the most unreliable trader (the government ... which never delivers on trading promises) certify unreliable trading promises. This just further drives away (actually inflates away) the reliable traders who make up the real market.
You wrote lots of words but you get it totally wrong!.
But I will grant you are sort of right in being wrong. A bubble-up wrong solution would be better than a trickle-down wrong solution. With bubble-up, the money eventually gets held by the 0.1%, but after it goes through the hands of the 99.9%. With trickle-down, it goes to the 0.1% and the 99.9% never touch it.
My point, perhaps ineffectively made, is that BOTH are wrong, and do not tackle the central problem: the pernicious effects of decades of outsourcing. Fixing that requires a wholesale change in the way we value what we value. Henceforth, it can never be JUST about the corporation and shareholders or investors precisely because of the tremendous damage such shortsighted thinking causes. This is the core of the problem, and it MUST BE resolved with new thinking, even if that means new penalties for failing to do so have to be applied.
If we've learned anything from this ongoing disaster, it is that businesses (large and small) must take place...SOMEWHERE.
That somewhere is a community, inhabited by PEOPLE. And they matter TOO.
We now see that greedy, small minded, bottom-line thinking actually DESTROYS lives by destroying livelihoods. If a corporation chooses to move vitally-needed middle class wealth creation (jobs) abroad, or else displace domestic workers with insourced foreign labor, it should pay a price for that. It doesn't now, and THAT must change.
At least dispensing cash broadly holds the possibility of diffusing throughout what's left of the middle class economy. That could just as easily end up in the hands of new small businesses that may well spring up to catch the new dollars as they fly around.
It is amply clear that monetary benefits to the racketeering bubble machine, that used to be a market...doesn't.
m
At least dispensing cash broadly holds the possibility of diffusing throughout what's left of the middle class economy.
Understanding money is crucial to this discussion. Money is "a promise to complete a trade". It is created by traders making trading promises. It is destroyed by traders delivering on those promises. If the trader fails to deliver, his DEFAULT is mitigated by an equal and immediate INTEREST collection, thus guaranteeing zero INFLATION, all the time ... everywhere.
Once you try to deviate from this obvious and natural concept ... especially for social engineering ... you are lost. You have no way to control anything but add myriad ways to manipulate and corrupt everything.
That being said, trade is about making deals you are satisfied with. You may be perfectly satisfied to pay $11/pound for a rib eye steak, especially if you're used to paying $25/pound. But if you're offered rib eyes at $6/pound ... because someone is able to happily trade them to you for that ... who can fault you for buying the $6 rib eye? Social engineers?
Communication and trade remove imbalances. Impede either and you create imbalances. It's only natural for all trade to gravitate to the most efficient exchange. In time a steady state is reached and a new balance obtains. We saw it with Japan. We're now seeing it with China.
Here's the real problem. The guy who can sell you the $6 rib eye can do it because he has become more efficient than his competitors ... probably by employing robots ... or finding cheaper labor. Eventually his competitors will employ robots and secure cheaper labor too. And those robots will displace people who were doing those jobs. In the end we are all out of a job.
This is what we should plan for. We should plan for the day that our individual and collective efforts have brought us near total leisure. At that point we shouldn't have a few remaining workers making enormous sums with everyone else making nothing.
Frankly, I don't see how we take a process that is so totally natural (making ourselves more efficient) and get it to take us to leisure rather than to destruction. There has to be a way. In the mean time, we don't serve ourselves by making things easier for the 0.1%. Proper management of the Medium of Exchange (MOE) removes their advantage and restores it to the traders ... like you and me.
All "trading" takes place within the context of (potential) robbery.
Sovereignty is based on the power to rob, with the most extreme form of that the power to kill to back up the power to rob. Hence, taxation backs up the monetary systems, which have become enforced frauds. The problems with saying that money should be a Medium of Exchange is that does not deal with the realities of slavery, which offered the "exchange" of "your money or your life."
Of course, guys like you, withglee, will continue to deliberately ignore that, despite that that explains human history creating the current monetary system based on governments enforcing frauds by privately controlled banks. There is an inherent paradox with any enforcement of the rule of law, that nobody guards the guardians that are supposed to enforce that rule of law. Voluntary contacts are ALWAYS inside the overall context of involuntary contracts. Most of those who promote idealized versions of what "money" should be tend to deliberately ignore that problem, since they have no realistic solutions for that problem, other than to deliberately ignore it.
Since civilization necessarily operates according to the principles and methods of organized crime, any realistic theory of "money" should be placed inside that context. Any other theory of what "money" should be tend to be bullshit. Money can be only a medium of exchange within the context that money is measurement backed by murder. There are no trading contracts that are not subject to robbery instead. Any trading is only possible inside of the context of some dynamic equilibria between the different systems of organized lies operating robberies. The dynamic equilibria that may be established through the dominance of some sovereign power being able to enforce its rule of law still nevertheless gives rise to the paradoxes with enforcement, that nobody guards the guardian, rather, what actually happens is that governments become the biggest forms of organized crime controlled by the best organized gangs of criminals, and therefore, that is why the existing monetary systems are based on enforcing frauds.
Money as "a promise to complete a trade" is NOT an "obvious and natural concept." Rather, it is ridiculously superficial view of money being measurement backed by murder. There is nothing which prevents "trading" from becoming "robbery," other than some enforcement of some rule of law, but then that automatically raises the paradoxical problems with the enforcement of that rule of law. The rule of law only exists due to the some group being the biggest and best organized gang of criminals, who exercise sovereign powers due to the history of them having done that.
Radical Marijuana: I have great difficulty reading what you write. I can't agree with it sentence by sentence. I can't distill it to a handful of points, let alone a single point. I search over and over for some form of thesis statement and can't find it.
I'll illustrate here by just taking one sentence which is obviously nonsense.
The problems with saying that money should be a Medium of Exchange is that does not deal with the realities of slavery, which offered the "exchange" of "your money or your life."
A Medium of Exchange could exist between just you and me. Or it could be expanded to people living on our block ... or liking to smoke weed ... or anything else that would lead us to associate and trade. So with that in mind, how in the world does it relate to slavery. How in the world does it relate to force?
I will grant you that a slavery trade began with force. The chiefs of the tribe had their people captured and given over to the slave traders ... in exchange for what? I do not know. But I am confident it wasn't in exchange for money because money would have been of no use to the chiefs. Those slaves then became objects of simple barter and were exchanged for money (or maybe cotton). So something of value was originally stolen and exchanged for something else of value (money or cotton).
What I write about is how that money is actually created. Traders create it by getting trading promises certified. They destroy it by delivering as promised. Whether they use it to buy slaves or corn on the cob is irrelevant.
In your gripe, the traders use it to buy ships and crews and stuff the chiefs will exchange for their own people. They then sell those people for more than the money they created. It's a illicit business. It obviously violates the golden rule at a minium. But it isn't the Media of Exchange's (money's) fault.
So what is the point of what you write in that sentence? What are you proposing?
"How in the world does it relate to force?"
Every claim over natural resources is based upon backing up those claims with coercion, through a long, long history of the commons being privatized. Anything that is made by transforming natural resources requires that someone first staked a claim on those resources. Everything that is "owned" in North American today is based on more than five Centuries of the European invasions staking claims to that real estate, and backing that up, through genocides, and then assimilation of the survivors.
You want to short-circuit history in ways that takes for granted the thousands of years of warfare, whereby conflicts were resolved, Indeed, way, way before that, bands of humans, and other animals as well, were staking claims to the natural resources in their environment, and backing those up with coercions. By ignoring that, while instead taking for granted that there is already "private property," then inside of those presumptions there can be "trading." However, all such "trading" was based on a priori robberies, which were often done by previous generations. Hence, those who ancestors were the best robbers are now able to assert their "legal" claims to "own" things that they can "trade," while those whose ancestors were most robbed now tend to "own" nothing. Ownership of any "private property" depends upon some system of public violence. You, withglee, are attempting to promote a view of political economy without violence, which is like promoting a view of physics without force.
"So what is the point of what you write in that sentence?"
My points are attempts to reconcile political science with physical science. Your sublime view of "money" fits into the old-fashioned view that "money is a matter of functions four:"
http://www.preservearticles.com/201104115268/4-essential-functions-of-mo...
My definition includes all of the above, plus connects that to realistic physical laws, that money is measurement backed by murder, which, in turn, fits into the overall consideration of information theory and thermodynamics ...
You are asserting nothing whatsoever that is "new" that I can perceive. You are merely pounding your points about what "money should be," in ways which deliberately ignore what "money" actually is now, which is due to governments enforcing frauds by privately controlled banks. Of course, I do not expect you to worry about that ... People love promoting their favourite impossible ideals, and you appear to have hit upon the ideal that money should be a MOE, in ways that deliberate ignore that the fundamental "exchanges" have more been robberies, backed by killing, which morphed to become legalized robbery, as taxation, backed by legalized violence, law enforcement, that enabled money as measurement backed by murder to become the currently existing systems.
P.S.
Maybe take the time to watch these free Excellent Videos on Money Systems ...
You will see that the points are pounded home over and over again, that the international bankers are the biggest gangsters, the banksters. One can not understand that outside of the history of the applications of the methods of organized crime. That should be understood as being consistent with general energy systems. Your views about what "money should be" are the same old-fashioned impossible ideals that have been the biggest bullies' bullshit for a long time. You are another reactionary revolutionary, or another manifestation of the controlled opposition, spouting mainstream notions about what "money should be" that deliberately ignore the history of warfare, and that all of economics was actually a subset of warfare, which is why money is measurement backed by murder.
Meanwhile, those social systems have become runaway psychotic insanities after the progress in physical science has enabled there to exist globalized electronic frauds, backed by atomic bombs. In that context, your old-fashioned views about what "money should be" continue to be dangerous dead-ends!
You are asserting nothing whatsoever that is "new" that I can perceive.
Then perceive this:
Contrast it with:
This is far from an exhaustive list
Another theoretical list of idealized notions, which can not be implemented due to the already existing double-bind paradox, or Catch 22, of the existing monetary systems, flowing through the funding of politics, which pay for the police and soldiers, to enforce what the government decides to do, as that government also operates through the flow of money, which money has already become almost inconceivably corrupt.
Those problems are NOT going to be fixed. Rather, they are going to get unimaginably worse ... Especially since most people who propose "solutions" are going to come up with idealized lists that can not be implemented, as well as tend to excessive operate inside of caring about the human world, while not caring about things outside of that. Most lists of things that we should do can not be implemented. Rather, what is actually happening is that the existing debt slavery is spiraling out of control, by automatically becoming runaway debt insanity.
We are stuck with old economic thinking, where the "new" that is most likely to actually be implemented will be worse, rather than better, as demonstrated by what the BIS recommends are its "solutions."
Generally, economists have defined four types of functions of money which are as follows:
(i) Medium of exchange
(ii) Measurement of value;
(iii) Standard of deferred payments
(iv) Store of value.
(i) should be "Media" of exchange
(ii) is not a purpose of money. It is a perception of traders. Money itself should just be "guaranteed" not be cause of change in this perception. That's all.
(iii) money does not need to be a standard. It only needs to have guaranteed attributes. Those being it is freely created by traders all the time everywhere and it guarantees zero INFLATION of its own perceived value.
(iv) money must be guaranteed to be a perfect store of value which derives from its guarantee of zero INFLATION and the objective process that guarantees this.
What do economists say about the creation and destruction of money?
What do economists say about the time value of money?
From my study, economists get it completely wrong. Proof is that for every economist, there is another economist that sees things differently. This is not natural. This is not a science. There is only "one" way to see the proper management of any Medium of Exchanged ... and it is obvious.
You are merely pounding your points about what "money should be," in ways which deliberately ignore what "money" actually is now, which is due to governments enforcing frauds by privately controlled banks.
I am pounding the point of "what money is, always has been, and always will be ... a certified promise to complete a trade".
Show me one case where money is not created by traders that is not obvious and open counterfeiting.
I don't ignore that money is improperly managed by governments ... I illustrated it by constrasting their mis-management with obvious proper management.
I openly expose the fraud of governments and banks ... private and public.
Almost ALL our "money" is obviously legalized counterfeiting.
The issue is that the frauds of governments and banks are ENFORCED!
The history of that enforcement means that the police and army will continue to accept being paid with that "money" and so, force everyone else to also accept that money. Any theory of what money should be that not based on recognizing FORCE as the actual fundamental deliberately ignores the FACTS.
Realistic resolutions of the problems would require being realistic about those problems. However, that is practically impossible due to those problems being the history of socially successful frauds and deceits, so that rational public discussions about monetary systems and economics are not happening ... Furthermore, your pie-in-the-sky views about what money should be do not help, because they side-step the central issues that frauds are being enforced.
It does no good to merely recognize the degree to which the money is fraudulent, without addressing the enforcement that made those frauds socially successful. The deeper reasons for how and why that is the way things actually work needs to be addressed. Idealized views of money that do not include the background history of robbery, and symbolic robbery through frauds, are dead-ends, because they ignore the basic FACTS.
Your views about what "money should be" are the same old-fashioned impossible ideals that have been the biggest bullies' bullshit for a long time.
At one time royalty claimed and got accepted that they were divine. Rational people know this not to be so ... and in some points in history revolted and the divine royalty yielded. Exposing truth is not impossible. It obviously becomes more difficult if the few existing rational people view it as being impossible.
The established systems based on backing up lies with violence do not care about "the truth." They only care able continuing to be able to enforce their frauds. Indeed, the meta-truth is much more complicated than over-simplified "truth" since that meta-truth has to include the truth about being able to back up lies with violence, or enforce frauds, which is actually the foundation of how social pyramid systems work.
Every claim over natural resources is based upon backing up those claims with coercion, through a long, long history of the commons being privatized.
So what does that have to do with money? Leave all natural resources in the commons owned by nobody. There will still be simple barter. And there will still be a need to extend simple barter over time and space. Money is in no way connected with resources of any kind ... natural or otherwise. It is connected with simple barter trade.
There was never a time when different groups of apes did not assert some territoriality over the commons. Apes were asserting some primitive forms of "this is mine" long, long, long ago!
The idea that money is not connected to resources is utterly absurd! Rather, money is the symbolic control over access to resources, which is why money is measurement backed by murder. Within a relatively sane and stable sovereign law system, then there can be trading, rather than robbery. Similarly, given other social situations where the trading works better than robbery, that that may happen. However, always in the background, surrounding and backing everything up is that the basic transactions are ROBBERIES, not "trading."
Trading is only possible as a dynamic equilibrium of robbery. That has become more sophisticated, so that the biggest and best organized gangs of criminals, the bankster dominated governments, are able to engage in symbolic robbery of everyone, through enforcing their frauds. They "trade" on the basis of "your money or your life."
They are the foundation of the real systems, because that is the foundation of the real systems.
By ignoring that, while instead taking for granted that there is already "private property," then inside of those presumptions there can be "trading."
Just how far do you want to take this public, private property thing?
If I go into the "commons" forest and collect vines and weave them into a basket, is that public property or private property that I have created? Should I be allowed to trade it for chestnuts someone else collected from the "commons" forest? Did anyone or anything get murdered in this process?
Murder is merely the most extreme form of all other lesser manifestations of robbery, which is basically TO TAKE. Murder is to take someone's life.
My view is that there is nothing which is private. There is only the public. Private property only exists inside of some system of public violence. Human beings and civilizations are entropic pumping of energy flows. They actually are their environment. Their environment flows through them, back to their enviroment. There was nothing that was ever actually private about that. There was only the ONE ENVIRONMENT, which manifested whirlpool like structures, as tubes of flesh.
Human beings and civilizations operate as toroidal vortices. There is nothing there but the flow through. Vortices are made of infinite loops through the environment and back. It is human beings that relatively SUBTRACT things, as well as themselves, from the whole environment, by perceiving that, naming things, including themselves, assigning properties to those things, as well as to themselves, and then telling stories about all that. After the original SUBTRACTION, then follows ROBBERY.
As soon as we preceive any living thing as separate from its environment, then it must take energy (& matter, as a form of energy) from its environment, to live, as well as much be able to dump its waste heat, (& waste matter) back into its environment. Given that, how does "private property" fit into that public environment? Obviously, as relative SUBTRACTIONS & ROBBERIES.
That starts with the ways that people perceive, which is inherent to human nature being that we grow brains that can learn language, that can somewhat organize our behavior. That languages that dominate the civilization that we were born into are the biggest bullies' bullshit, which deliberately presents everything in absurdly backwards ways. The most abstract of those are that an arbitrary minus sign was inserted into the entropy equations, so that thereby the SUBTRACTION WAS SUBTRACTED.
Private property is based upon SUBTRACTION of something from the whole environment. However, our social system presents that as being relatively positive, rather than as relatively negative. From the point of view of a human being, to kill and eat other beings appears to be positive. However, from the overall perspective of energy systems in the whole environment, it is merely more entropic pumping of energy flows.
There is NO fundamental dichotomy between private versus public. Everything is public, including the violence that provides the coercions to back up the claims that are staked regarding any assertions regarding whatever may be labeled as private property. As usually the case in our civilization, everything regarding private versus public is backwards, and is therefore getting worse, faster! Making a killing is presented as always being positive and a totally good thing to do, which makes better balanced killing practically impossible. Instead, human beings, as operating through a civilization based on backing up lies with violence, are killing the planet, and heading towards killing off themselves through committing collective suicide, due to the degree that they are psychotically out of touch with their environment.
Therefore, the answer to your question of "how far do I want to take that," is as far as possible! Our civilization is as backwards and absurd as it can possibly be, due to the history of the social successes based on backing up deceits with destruction, and enforcing frauds. Those are intensely paradoxical, in ways where theories about "trading" that do not place that in the overall context of the fundamental concepts of SUBTRACTION and ROBBERY, continue to be useless old-fashioned approaches.
We need profound paradigm shifts in the ways that we perceive politics. Ways that will reverse the ways that we were taught to presume were the case. It is not possible to over-state the degree to which our current civilization has become runaway criminal insanities. In that context, marginally better "trading" is way too superficial a solution.
In that context, your old-fashioned views about what "money should be" continue to be dangerous dead-ends!
I have been addressing those questions and generating possible answers for several decades.
Intellectual scientific revolutions are the ways forward. Paradigm shifts do not initially change what exists, but only the ways that we perceive what exists. There is a long history of scientific revolutions, such as reviewed by Thomas Kuhn in The Structure of Scientific Revolutions. That is what we need to happen in political science, and that is what I have been developing for my whole life, ever since I was a teenager and recognized that I had been born into a system that was based on exponential growth, backed by weapons mass destruction.
My views are meta-views, in the sense that I assert that everyone, including me, is necessarily living through more or less organized systems of lies, operating robberies. The only things that actually exist are the dynamic equilibria of those different systems. All human systems are fundamentally based upon the processes of SUBTRACTION and ROBBERY, both of which are deliberately presented in the most absurdly backward ways within our currently existing civilization, due to the degree that is dominated by the biggest bullies' bullshit world views.
My views are intensely paradoxical, due to the ways that they return to the basics in order to understand the facts that money is measurement backed by murder, or that our political economy is based upon enforced frauds. It is NOT possible to stop human beings from operating as entropic pumps of energy flows. However, it is possible to understand that better, by going through profound paradigm shifts that recognize the degree to which we were taught to perceive everything in the most absurdly backward ways by the biggest bullies, such as currently the banksters.
I do NOT assert that we "obviate coercion and murder." However, we can develop better resistance, to change the paths of least resistance, so that there is relatively better trading, rather than relatively worse robbery. That is, we cannot change that human beings live as entropic pumps of energy flows, based upon original subtractions and robberies, however, we can change the dynamic equilibria between the different systems of organized lies and robberies.
Anything that is finite that I assert as my views must necessarily be based upon some relative subtractions, and therefore, must be some relative illusions, or relative lies, which have some necessary blind spots related to that particular perception. Therefore, it would be ridiculous for me to assert that everyone else must agree with any finite statement that I may make. But nevertheless, overall, what I am attempting to promote are series of intellectual scientific revolutions, which would apply generally to political science. To the degree that I develop better models of how the world works, that could be useful to other people. However, obviously, those would still only be alternative models, and like all models, subject to limits of measurement.
I keep on harping on the ways that we should make our accounting systems be based on a energy standard. However, in order to do that, we have to revolutionize the ways that we think about time and space, as well as entropy. The way that we think about entropy now was inverted, and only by inverting that inversion can be we develop better understanding of human beings and civilizations as general energy systems. That would then enable human systems to become better integrated with industrial and natural energy systems.
In general, I tend to agree with the ideals about what money should be. However, I insist that almost everyone who attempts to promote those ideals have their mechanisms backwards. By and large, there is almost nothing but a core of organized crime, surrounded by controlled opposition, which is mostly controlled by taking for granted the ways that they think, due to the language that they use, or the philosophy of science that they presume is correct. The realistic ways to work towards the ideals of what money should be must start from what money is, namely measurement backed by murder. That then can enable understanding how private property actually manifests, as claims backed by coercions, inside of the overall context of the environment, which is through and through public. Such more realistic and factual views could then provide the mechanisms to work towards the development of better dynamic equilibria between the different systems of organized lies operating robberies.
The history of science was full of events where progress reached some dead-end, because the fundamental frame of reference was wrong. No more puzzles inside of that frame of reference could be adequately solved, because the frame of reference itself was wrong. We have reached that point in our political situation. We cannot resolve our problems from within the established systems. We need series of intellectual scientific revolutions, in order to change our overall frame of reference, regarding how we perceive those problems.
That is being made imperative by the development of globalized electronic frauds, backed by the force of atomic bombs. Those technologies exist due to profound paradigm shifts in physical science. IF our politics is going to adapt to survive those technologies, then our political science has to go through even more profound paradigm shifts. However, in the past, such paradigm shifts usually took several generations, while now it appears we have run out of time to adapt.
Therefore, I continue to promote what I consider to be the theoretically possible solutions ... However, I have become more than 99% convinced that we are actually headed through the runaway debt insanities provoking death insanities, and it is not at all clear that a technologically based civilization can survive long enough to adapt to the development of its own technology. In theory, the philosophy of science should be the most important thing to a technological civilization. However, our existing politics continues to almost totally dominated by old-fashioned religions and ideologies, which tend to be adamant about not wanting to adapt, by changing their metaphysics in ways which are consistent with the changes in physics.
Metaphorically speaking, whether the Earth is flat or round should not be resolved by compromising that it is a big cube. Rather, one must go through the paradigm shift to accept it is round, before then being able to modify that, such as to qualify that it is not a sphere, but an oblate spheroid, etc. ... Similarly with my political views. It is not possible to not change the paradigms. It is not possible to accept any compromises to only partially change the paradigms. We should radically change the paradigms through which we perceive our political problems, and then, on that basis, we could have progress in political science. However, that progress continues to be extremely problematic because its central features are necessarily the death controls systems, with the human murder systems being the most extreme of those.
Of course, that is how and why our current political problems appear to have become terminally screwed up, because there must be death controls, and there are, however, the existing combined money/murder systems have developed to become based on the maximum possible enforcement of frauds. First, enough of us would have to perceive that for what it is, to then maybe be able to change that in more realistic ways, and second, such changes would have to continue to be realistic, in the sense that money would still have to basically be measurement backed by murder ... Meanwhile the existing globalized systems of electronic frauds backed by the force of atomic bombs continue to automatically become more and more criminally insane MADNESS!
The degree to which the biggest bullies' bullshit world view dominates everything is the degree to which our civilization has become psychotically out of touch with its own realities, as situated inside of the overall environment. We continue to have more and more progress in physical science, without any progress in political science, with the deeper reasons being due to the paradoxical ways that social success became based on being the best at backing up deceits with destruction, and enforcing frauds. There are deeper and deeper levels we would have to change our perceptual paradigms upon, regarding how and why the human death controls actually worked, and how and why those worked in those ways.
Overall, I see no other choices but to have to continue to muddle through the MADNESS of the increasingly unbalanced dynamic equilibria between the different systems of organized lies operating robberies. So far, it has become extremely problematic, and perhaps fatal, for human beings to have developed globalized electronic monkey money frauds, backed by the threat of force from apes with atomic bombs. THOSE ARE EXTREME CONTRADICTIONS, WHICH PRESENT INTENSELY PARADOXICAL POLITICAL PROBLEMS!
At the present time, there is almost nobody who is able and willing to go through enough paradigm shifts in the ways that they think about politics, in order to cope with the existing globalized electronic frauds, backed by atomic bombs. Rather, discussions of political economy tend to do nothing regarding changing the basic ways that they think about those issues. IRONICALLY, they often talk about the need to change the "old economic thinking" but never actually do so in any sufficient ways, which is what the article above was about!
In your case, withglee, I have not noticed you changing your opinions about what "trading" is that even come remotely close to regarding that as events in the overall entropic pumping of energy flows from the environment and back, through the "traders." Even less do you consider that radically different ideas about time and space, such as developed in quantum mechanics and the special theory of relativity (which enabled electronics and atomic bombs), demand that we profoundly change the ways that we think about entropy, which is how energy is distributed in time and space. In fact, we currently think about entropy in totally backward ways, because that was the only way to make our ideas about power and information continue to be consistent with the preferred biggest bullies' bullshit world views.
Most of the mainstream people continue to be deliberately ignorant regarding the public "money" supply being actually based on governments enforcing frauds by privately controlled banks. However, the few that do understand that only do so superficially, and therefore, promote superficial "solutions." What I have been repeating is that the ways that we were taught to perceive the world, and to think about that, are way more absurdly backwards, on way deeper levels, where the lies are different at every level. In my opinion, it is those kinds of paradigm shifts which are necessary to better perceive what the traders are doing, when they are trading, when that activity is viewed as being general energy systems, engaged in entropic pumping through the environment (where, ultimately, all those traders actually fully ARE that environment.)
Overall, it seems to me to be another one of the typical cruel jokes when the BIS discusses the "old economic thinking" as a problem, but then presents bogus "solutions" which are NOT based upon any genuine paradigm shifting new ways of thinking, but rather, only extrapolate their bullshit based on enforcing frauds on the national level to a supranational level. More tragically, as most of the other articles and comments published on Zero Hedge indicate, those relatively few people who DO recognize that the political economy is being controlled by national governments backing up the international bankers frauds STILL also continue to come nowhere close to sufficiently changing their paradigms, amongst which groups I would certainly include you too withglee.
that deliberately ignore the history of warfare, and that all of economics was actually a subset of warfare, which is why money is measurement backed by murder.
A properly managed Medium of Exchange is a tool for traders. Trade can and does exist without war and coercion. While war does require trade, the reverse is not true.
Economics is a relatively new and totally bogus science. There are no principles at all. That doesn't mean traders can't benefit from the tool they invented called money. Traders don't need economics to extend simple barter over time and space with money. Economics only really come into play when the process is mismanaged and manipulated and corrupted ... that makes economics a crap shoot.
Economics is a subset of warfare. Warfare is the oldest and best developed social science and social engineering. However, its successfulness is based upon deceits and treacheries, which is what makes it an intensely paradoxical science. The same goes for financial success based upon enforced frauds. Judged from the degree to which the richest people keep on getting richer, that science of economics is extremely successful, at achieving its real goals. It is real science, however, it core is to get better at enforcing frauds, which appears to be paradoxically unscientific, to those who do not look deeper at what is really happening.
Human artificial selection systems were driven by natural selection pressures. Human intelligence was the internalization of natural selection, and was applied to the most important problem, which was other people. Therefore, the history of warfare, and inside that, the history of economics. Financial success based upon enforcing frauds is quite successful for those who are doing that, at least in the short and medium term. Economics is NOT a "bogus science."
You have a bogus view of natural selection, and the natural environment, which enables you to have a bogus view about what artificial selection in the artificial environment should be. Your notions of "traders" appears to float free of them being entropic pumps of energy flows, that come from and return to the environment, to the degree that they ARE the environment.
My definition includes all of the above, plus connects that to realistic physical laws, that money is measurement backed by murder, which, in turn, fits into the overall consideration of information theory and thermodynamics ...
This is pure raw "doubletalk".
Trade has no care about information theory and thermodynamics. Trade itself doesn't even care about physical laws.
Traders only need to know that it is "they" who create money. It is "they" who destroy money. It is "they" who must protect the process by transparently monitoring trading promises and their certification. It is "they" who must monitor for defaults. It is "they" who must mitigate defaults with like interest collections. It is "they" who desire to remove money considerations from trading decisions by guaranteeing zero inflation of the money itself.
You could not have more directly stated how deliberately ignorant you are, regarding the basic physics, by asserting that: "Trade has no care about information theory and thermodynamics. Trade itself doesn't even care about physical laws."
More than anything else, that statement confirms that it is waste of time to attempt to discuss political economy with you, since you deliberately do not want to connect that to physical realities, must less change the paradigms, through which we perceive those. In general, when multiplied by billions of times, that is overall how and why the human species is most probably going to commit collective suicide, due to progress in physical science not being matched by progress in political science.
People love promoting their favourite impossible ideals, and you appear to have hit upon the ideal that money should be a MOE, in ways that deliberate ignore that the fundamental "exchanges" have more been robberies, backed by killing, which morphed to become legalized robbery, as taxation, backed by legalized violence, law enforcement, that enabled money as measurement backed by murder to become the currently existing systems.
This is utter nonsense. I have never made a single trade in my entire life that was not backed simply by trust. No one has ever successfully litigated a trade dispute against me. I have never used the courts to resolve a trading dispute I have had though I have been dragged in to court by those who think they are useful.
I have been screwed a time or two. I have never put the screws to anyone.
But laws and coercion have never been in my tool kit. I mitigate trading problems by adjusting my choice of trading partners and trades. And I am in the majority ... not the minority.
Money plays no part in that whatever. Our current mis-managed MOE with its well known 4% leak and its advantages to the 0.1% over myself is just an unnecessary cost of doing business. We can do better, but right now there is no better choice than our government controlled and manipulated money.
It's strictly about trade Radical Marijuana ... and we all must ... and do ... trade. What I describe is ideal ... but it's not impossible nor difficult nor unrealistic to obtain. And it has "nothing" to do with war and murder and coercion.
Thanks for having that discussion.
Clearly so.
RadicalMarijuana: You have written 8,248 words. Yet you have answered none of my questions on what you would do differently.
Here's a short (I wish) collection of your thinking and my reactions:
I have taught my computer (that powerful tool of death control) to count RadicalMarijuana's words. I wish there was some way for it to make sense of them.
Please excuse my butting in here WG, as I estimate you two have finished, for now.
I just want to add that the claim RM makes above is quite disrespectful of the other party, incorrect and a bit disingenuous. I see the opposite in the above questions, remarks and replies, namely, the relating of mere words and concepts back toward actual situations and processes.
For my part I have never spoken to you RM, in any other way. I would not be in the slightest interested in a discussion that did not relate to actual situations, and you seem to be simply wanting to mentally shoo-away and dismiss, while pretending the points are inferior and not really going deeply enough into your intellectual memes. Memes which are in fact, not reflecting or connecting very well to actual situations.
That sort of down-playing of points and questions is disingenuous, especially when you make illogical sweeping statements, and then never explain them, even when asked to, but want to refer people to some old unknown book you say you have published, or to some obscure intellectual rabbit warren within you website, to rifle through ~25,000 words per comment, with 20 or so comments per page, and who knows how many pages.
No thanks.
And doing that is the same as not replying. You can not be bothered trying to make specific cogent sense in a normal stepwise manner. You instead come across as merely trying to condition people and suppress people's questions, via shear weight of verbal tedium, and much alleged superiority of your verbal and cerebral convolution.
Apparent premeditated lengthy repetition of concepts and terms that frankly, merely seems to act as your avoidance buffer so you don't have to field direct questions, with clear cogent discussion statements, as opposed to more repetitious pontificating.
And reform, and new perceptual paradigms are clearly not a high-priority, in that area.
As for;
To me, you're definitely barking up the wrong tree their. I (and I presume your interlocutor) have a formal science background (and it's quite evident you're a layman, btw) so I know, acutely, the primrose path of interpreting data via a paradigm to prefilter (bias) an 'acceptable' interpretation of the observation of raw data.
That 'paradigm' framework habit of interpreters I think is the number one problem within the formality called science today, and it always has been, to some extent. And it's the thing that I for one am the least bit interested in or respectful of. It is mostly an impediment, rather than an aid. And if you ever worked vocationally within a science interpretive paradigm and went in to battle every day to point out how the paradigms never meet reality, and sometimes don't even approximate it, then you would not be so hot for a new paradigm. Especially given you think the current paradigm is such a problem for you to get people to see past.
Actual free thinkers are in fact not interested in anchoring their mind, dog on chain like, to a paradigm.
And that is why I always relate things to observation when and where possible (as did your interlocutor above).
But for you, this all seems to be an intellectual round-about, that you're perpetually stuck on, around and around you go. Which is why I said recently to you that you've become addicted to imaginary 'solutions', to imaginary 'problems'. That is a common mental malady, for sure, ubiquitous in fact, but you have a particular tendency to indulge in it, and have become impervious to reasoned discussion of what you imagine is the problem and imagine is a viable solution.
Despite many words, neither are any clearer than the first time I read them.
And given the unexplained content of your epic harangues, they come across as ... ... hmm, how to put this? ... ... several sausages short of a barbecue.
There is a huge problem when, for example;
The Govrnment mandates regulations for the enviroment, wages, accounting rules and taxes for industry.
Then the industry offshores to a locale that does not have the same onerous rules. And then those products, once made here, for domestic consumption and export, are then imported duty free.
We probably all like cheaply priced goods, until we realize they destroyed our economy in the process. And what benefit are these goods if we can't earn wages to purchase them?
China will pay, dearly, long term for the environmental destruction they have foisted upon themselves. And we are paying dearly for the destruction of our middle class and manufacturing base.
10 years from now, we won't have any real machinists. Or many other specialized talents required to make things. We can't all count each other's money, or cut each other's grass.
And you turds in government right now, enjoy it while it lasts. That gray train can't go on forever.
O.T.
NYPD cop's fistfight with suspect caught on video
RT news.. Worth watching! Damn police state.
Published time: July 04, 2015 05:38 http://on.rt.com/49ektb
Maybe sone "old thiniing" policies might be good. You know. Do not spend what you do not have. Save money for major projects and do not borrow. The stuff we learned from the bible, the roman empire etc etc etc.
It's BIS is old-thinking. It's a new world. The dynamics are new. Burn the old textbooks. Smash the old models. Not sure we have any new models that work, but Bernanke's is better than most - the model he has not publicly shared, not the crapola he posts on his blog.
The uncertainty is ginormous, but it's not impossible that it actually works out fine. It could happen.
Terrible article. Can't believe anyone here -- let alone so many -- gave it a "5". I gave it a "1" b/c "0" is unavailable.
<<And that’s where the bigger boat comes in. We live in a global economy, and the central problem we face is global liquidity. In times of crisis, central banks have proven their ability to cooperate for the good of all. But what we need is more than that. What we need is cooperation for crisis prevention. Faulty ideas are part of the problem, and faulty mandates are the other part.>>
Globalisation IS the problem! That's why there are no safe countries left to run to. That's why this is the Greatest Depression the world has ever known. (And God willing, will ever know.)
Central banks are what created this mess, and their 'co-operation' has made it multiples worse. Their 'co-operation' is better known as 'organised crime', which is VERY co-operative - i.e., if you don't 'co-operate', you just might get your business burned to the ground or experience a family extinction event.
Figures this came from the insolvent and evil BIS. I'm sure they'd like to be in charge of everyone's money, everywhere, and have no independent, autonomous groups or nations, or individuals, left.
Long live the Borg, right, BIS?
Keep 'em coming, Tyler. We need to be aware of what these fucking central planners are up to. My '1' score is for the BIS, not you. I can only hope the article up-voters were encouraging the information provided here as a heads-up about this BIS scum, and not grading the article itself. What a joke.
Disgusting article from the usual satanists.
"Economics is what we say it is.
Stop asking questions...."
Is Perry an ironic man ?
One should know by now that also the BIS doesn't understand how the economy works, being Keynesians.
...and having lust for power.
No, the problem is Jew infested Wall St and big business! Start with them to solve the problem!
If we all just get together and vote hard enough, I'm sure we can vote our guys in and these BIS guys out.
The article says that the bank cooperation is not high-level enough.
Others say that Globalization is the problem.
Others say that fiat currency is the problem.
Others say that central planning itself is the problem.
All near misses.
The attempt to get something for nothing is the problem. It is central to all Macroeconomics since Keynes.
The theoretical structures used to try and get something-for-nothing are varied in method, but unified in outcome. All will attempt to implicitly rob someone else to feed the illusion manipulating the value of the trading medium creates value. The outcome...the INEVITABLE OUTCOME, physics tells us... Is that it doesn't. Simple as that.
You can't get something for nothing. It is simply impossible.
Our elites were seduced by the idea of a free lunch a little over a century ago, and have created ever-more-complex structures to keep the apparent 'profit' going. But all of their techniques are based upon robbery; Robbing your trading partners (mercantilism); Robbing the rich in theory, and the middle class in practice (socialism and communism); Robbing the domestic population (protectionism); Robbing savers (Monetarism); Robbing the future (Keynesianism).
It is impossible to get something for nothing. Impossible. It is physically impossible. And because it is physcially impossible, all the means of simulating the result are simple theft.
To grow more wealthy you must use resources more efficiently. To use resources more efficiently you must innovate. Currency, credit, and economics are simply the transmission mechanism. Where currency, credit and economics are efficient, technological progress will transfer wealth quickly. Where inefficient, slowly, not at all...or even react destructively to innovation.
That last is where we are right now...the active suppression of innovation in order to benefit entrenched interests in the belief that WHO THEY ARE is of value rather than WHAT THEY DO, or HOW THEY DO IT.
Want to fix things? Get everyone out of economics. Stop making national currencies altogether, and let people decide what to accept on their own. Fractional Reserve banks will collapse over time...because that is what they are designed to do... rob their customers until their customers inevitably abandon them.
Policy is not the solution. It is the problem.
you can't argue amreica is now a service centered economy, now who has imported20-40,000,000 million sevice industry workers, with hiring incentives, and govt entitlements.
seiu will soon unionize these workers, forcing co's to raise prices, which will increase prices, reducing the need for service workers, carter yrs. on steroids.